Housing construction recovery takes backward step

THE burgeoning housing recovery took a backwards step late last year, with new data showing a 1% fall in construction work completed in the December quarter.

Figures from the Australian Bureau of Statistics released Wednesday also confirmed a 2.5% fall in the value of residential building work on new homes, disappointing the construction sector.

Housing Industry Association economist George Murray said while the industry saw "good things across a number of leading indicators", the data confirmed the speed of the recovery had been "overstated".

He said there remained a need for policy reform to support housing, if the industry is "to make the expected contribution to economic growth".